What is economic goods? Consider a world without scarcity. If infinite quantities of every good could be produced, what would be the results? People would not worry about stretching out their limited incomes because they could have everything they want. In such a rich world, all goods would be free, like sand in the desert or seawater at the beach. But no society has reached a utopia of limitless possibilities. Ours is a world of scarcity, full of economic goods. An objective observer would have to agree that even after two centuries of rapid economic growth, production in our society is simply not high enough to meet everyone’s desires. Ours is a world of scarcity, full of economic goods. I don't know what that means. What is economic goods? Please help me! Thanks!
Mar 14, 2014 7:20 AM
Answers · 2
I am no economist but in simple terms, an economic good is anything that has some value or "utility" that you can buy or sell in the market. The computer or other device that you are reading this on, the internet connection you are using, the food that you eat, the clothes that you are wearing - all are economic goods. You buy them, and you get something (utility) out of it. But air is not an economic good because you are not paying for it, even though without air you cannot live. The reason why air is not an economic good is it is available everywhere, or in other words, it's not scarce. So you cannot sell air because nobody wants to buy. Our world is full of things that are scarce and provide utilities to us and people are willing to pay for them. Hence ours is a world of scarcity, full of economic goods. Does it make sense?
March 14, 2014
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